CA R B Sharma
Arjuna (Fictional Character): Krishna, recently everyone has celebrated the festival of Raksha Bandhan along with that many Taxpayers have filed Income Tax Returns. Krishna please explain, what difficulties arise while filling Income Tax Returns, what Taxpayers should do now and what, if no return is filed.
Krishna (Fictional Character): Arjuna, Raksha Bandhan is the festival of Brother and Sister. Every year Sister ties “Rakhi” to her Brother. Same is of Income Tax department and Taxpayer. Every Year Taxpayer has to file Income Tax Return. As for Raksha Bandhan Brother has to come to her sister or Sister has to go to her brother likewise many Taxpayers go to Tax Practitioners for filling of Return of Income. It is the responsibility of Taxpayer to file Income Tax Return. Non Tax Audit applicable taxpayers are required to file Income Tax Return before 31st July of every year but this year due to delay in availability of Income Tax Return forms this date is extended to 31st of August. Due to various changes made in Income Tax Return and due to delay in availability of E- Forms Tax practitioners have faced many difficulties. It is said, that out of 3.45 crores of Taxpayers 3 crores are required to file return before 31st August. That’s why, Less Time more Load still done with ITR upload.
Arjuna: Krishna, Which difficulties faced by taxpayers or tax practitioners while filling Income Tax Returns?
Krishna: Arjuna, It is compulsory for Taxpayers having taxable Income more than Rs. 5 Lakhs or having Refund, to E-file Income Tax Return on the Income Tax department’s website www.incometaxindiaefilling.gov.in. Taxpayer has to do verification after uploading of Return of Income. Many options are available for verification. This year there is option of verification of Return of Income by using Aadhar. But in this the information in Aadhar like Name, Date of Birth, Mobile No. should be similar with the record held by Income Tax Department otherwise Aadhar Card cannot be linked. Many Taxpayers forgot password of Income Tax Account therefore at the time of filling of Return of Income the Password is required to be reset. From this year, all taxpayers are required to give details of all Bank Accounts in Income Tax Return. Due to all this stuff and lack of time it becomes difficult for the tax practitioners.
Arjuna: Krishna, What Taxpayers should do now after filling of Return of Income?
Krishna: Arjuna, taxpayers who have not verified the return by the procedure of Aadhar or Digital Signature or by EVS system are required to send signed copy of acknowledgement to Bangalore by post. If the taxpayer have refund as per return then Income Tax Department will credit the Refund in the Bank Account of the taxpayer after due verification. If in the scrutiny or verification process of the income tax department if it found issues or errors in the return filed then it will send Notices to the taxpayer. Further, taxpayer can even check previous year’s Status, Acknowledgement, Refund Reissue Request etc. by going into My Account after logging on the department’s website.
Arjuna: Krishna, What if no Income Tax Return is filed by the Taxpayer?
Krishna: Arjuna, this year the due date for filling Income Tax Return is 31st August but those taxpayer who has not filed return by the due date can file late return before 31st of March, 2017. If the taxpayer receives any Notice from Income Tax Department before this date then Taxpayer has to file Return accordingly. If Taxpayer is claiming loss and has not filed return before the due date i.e. before 31st August then the loss cannot be carried forward. Further, if return is filed after the due date then Taxpayer is required to pay additional interest on tax.
Arjuna: Krishna, this is for individual taxpayer’s not eligible for tax audit but what for the taxpayer’s to whom tax audit is applicable?
Krishna: Arjuna, the due date for taxpayer’s to whom tax audit is applicable is 30th September. But these Taxpayers should not wait for the Due date and should submit all the details and file Return as early as possible. Tax Audit Report also asks for many details and Chartered Accountants also have to prepare many working papers. Further validation of Tax Audit report, ITR and its uploading takes lot of time. He also has to suffer from many technical problems like internet connectivity, uploading errors and return validation errors etc. So, taxpayer should co-operate with Chartered Accountants.
Arjuna: Krishna, what Taxpayer should learn from this?
Krishna: Arjuna, Computerization in large quantum is done in Income Tax Department. By this many Taxpayer were benefited. But this Year due to delay in availability of Forms, Returns were filed at a fast pace. Undesigned difficulties arise due to lack of Time. From here onwards Taxpayer may have to suffer from such kind of Technical Difficulties. So, Uploading and Downloading issues have increased the load on new generation in their life.